The dollar strengthened on Tuesday, marking its second consecutive daily gain, as firmer-than-expected retail sales bolstered economic growth prospects while keeping Federal Reserve rate cut expectations alive. U.S. retail sales remained unchanged in June, defying predictions of a 0.3% decline, showcasing consumer resilience despite high interest rates affecting auto sales.
“The consumer’s still doing pretty well, and we all know that’s the base of the U.S. economy,” noted Joseph Trevisani, senior analyst at FX Street.
The dollar index climbed 0.07% to 104.31, while the dollar gained 0.28% against the yen at 158.46. Meanwhile, sterling weakened to $1.2957 ahead of British inflation data, and the euro edged down to $1.0891 before the ECB’s policy meeting.
Federal Reserve Chair Jerome Powell remarked that recent inflation readings enhance confidence in reaching the Fed’s targets. The Canadian dollar also rose slightly following slower-than-expected consumer price growth, hinting at potential rate cuts by the Bank of Canada.
Bitcoin rose 1.58% to $64,780.28, and Ethereum increased by 0.83% to $3,463.60, reflecting modest gains in cryptocurrencies.
